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Morrisons to cut prices to take on Aldi and Lidl

Morrisons Chief Executive Dalton Philips said it was investing £1 billion over the next three years in an aggressive price-cutting strategy to take on discounters such as Aldi and Lidl, saying:

We are going to lower our prices on a permanent basis.

The biggest challenge that we face is that there has been a fundamental change in how consumers view discounters.

They are no longer going to them out of necessity. The perception has changed and there is a new price norm.

The rules have changed and we must change too. It is absolutely critical that we begin winning again in our core supermarkets. To do that we must compete on price.

Mr Philips said that after 2015/16 no new supermarkets would be built other than in exceptional circumstances though its network of convenience stores would continue to be developed.

Morrisons reports £176 million annual loss

Britain's fourth-biggest supermarket Morrisons slumped to an annual loss of £176 million today amid falling sales and one-off costs of £903 million.

The struggling supermarket fell into the red in the year up to February 2, after a profit of £879 million the year before.

The supermarket said the 'challenging consumer and market environment' would persist into the current year. Credit: Press Association

The £903 million charge included write-downs on the value of its stores and its 2011 acquisition of online children's wear retailer Kiddicare, which it now plans to sell in the wake of a poor financial performance.

Like-for-like sales were down 2.8% for the year.

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Morrisons boss' surprise at online delivery popularity

The chief executive of Morrisons has told ITV News' Business Editor Laura Kuenssberg of his surprise at the popularity of online deliveries - and admits his regret over not launching the service earlier:

Morrisons CEO makes supermarket's 1st online delivery

Morrisons CEO Dalton Phillips has made the supermarket first online delivery in the Midlands.

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Morrisons blames market for 5.6% Christmas drop

Morrisons suffered a difficult Christmas period. Credit: PA

Supermarket Morrisons posted a sharp fall in like-for-like sales over Christmas, blaming the "disappointing" performance on difficult market conditions, heavy discounting by rivals and the lack of a full online offer.

The UK's fourth largest supermarket chain said its like-for-like sales excluding fuel dropped 5.6% in the six weeks to January 5th.

Including fuel, the drop was 7.1%.

It said it now expected its full-year underlying profit performance to be towards the bottom of the range of current market expectations, which stand at £783m to £853m.

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